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GSE’s reorganization is confirmed

July 29th, 2014 / By: / Industry News

‘Pre-arranged’ plan paves emergence from bankruptcy.

GSE Environmental, a Houston-based global manufacturer and marketer of geosynthetic lining products, announced in a July 28 press release that it has received confirmation of its Plan of Reorganization from the Bankruptcy Court for the District of Delaware. That court has been overseeing the company’s Chapter 11 proceedings following its voluntary filing on May 4, 2014.

The release said that the plan received full support from all of GSE’s major stakeholders. That confirmation clears the way for GSE to emerge from its court-supervised financial restructuring.

Upon emergence, GSE’s common stock will be canceled and investment funds managed by two Greenwich, Conn.–based private equity firms–Littlejohn & Co. and Strategic Value Partners-will convert their outstanding first lien debt to equity and will become GSE’s new owners, according to the press release. The plan will become effective when all closing conditions have been met.

The release said the pre-arranged restructuring plan confirmed by the court will “eliminate a substantial amount of debt and secure additional capital for GSE on a going forward basis.

“The plan provides for the payment in full and in the ordinary course for the company’s trade vendors that agree to return to market terms for trade credit and provides for a meaningful recovery to unsecured creditors.”

The press release quoted Chuck Sorrentino, GSE’s CEO, “We are pleased to have reached this important milestone and look forward to exiting Chapter 11 shortly. We have used this process to establish a new capital structure with a substantially stronger balance sheet. We expect to emerge as an even more competitive and well-capitalized company, with excellent liquidity and greater financial flexibility to accelerate our growth and continue to meet the evolving needs of our customers.”

For documents relating to the filing: www.gseworld.com

For more information: 281 230 5843, recapitalization@gseworld.com

Source: GSE

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